Dive Brief:
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A bit more than a third of American consumers with credit, or 77 million, have unpaid debts that have been sent to collection agencies, according to a new report by the economic policy nonprofit Urban Institute and consumer credit research organization Encore Capital Group's Consumer Credit Research Institute.
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The median amount of debt in collection is $1,350, a significant amount, analysts said.
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The one-third figure appears to be a long term situation, considering that research from the Federal Reserve in 2004 found similar figures then, the researchers said.
Dive Insight:
For those wondering about a so-called “retail funk,” this snapshot of American consumer debt may be a piece of the puzzle. A third of Americans with debt at collection agencies, which spurs hassling phone calls, demanding letters, and black marks on credit reports, surely leads to financial stress and worries that would impede retail shopping.